East Midlands Chamber has said a 20% cut in business rates for pubs and clubs is a ‘significant step forward’ but renewed its call for support for the wider hospitality sector, across manufacturing, small businesses and as part of a full root and branch review.
The cut, announced by the Prime Minister, will be applied to business rates from April 2027 and follows a 15% cut announced by the former Chancellor earlier in 2026.
East Midlands Chamber Director of Policy and Insight Richard Blackmore said: “A cut to business rates and widescale reform is something we’ve been calling for, for years – it’s one of the policy asks in our publication The Framework for Growth, as part of a wider review of business rates – so I’m pleased the Prime Minister has taken this action, which we, alongside pubs and clubs have been lobbying for.
“This move is a significant step forward in helping pubs and clubs, which, like the whole hospitality sector, manufacturing and small businesses, have been disproportionately impacted by business rates, on top of having other high costs to navigate. My hope is that this support will be extended to reach all parts of hospitality – cafes, coffee shops, restaurants and hotels are an equally important part of the East Midlands economy – supporting them, manufacturers and small businesses is essential to growth. The detail matters in the planned business rates cut too and we will need to look at that closely on behalf of our members – what is covered exactly, what isn’t, what businesses are eligible and how long does this 20% cut last for?
“Ultimately what’s needed is a full root and branch review of business rates – not a quick sticking plaster or an approach that helps some firms but not others. Business rates is an essentially broken, 19th century system trying to be applied in the 21st century – it’s just not fit for purpose. This is a good first step taken by the Prime Minister and I hope will be followed by wider support announcements so that all parts of the hospitality sector, manufacturers and small businesses are incentivised to invest to grow.”
To view East Midlands Chamber’s Framework for Growth in full, click here.
